;ITY OF Los ANGELLCALIFORNIA

TONY M. ROYSTERGENERAL MANAGER

ANDCITY PURCH ASl NG AG ENT

DEPARTM EN T OF

GENERAL SERVICESROOM 701

CITY HALL SOUTH

I 1 1 EAST FIRST STREET

LOS ANG~LES. CA 90012(213) 928-9555

FAX No. (2131 928-9515

ANTONIO R. VILLARAIGOSAMAYOR

August 6, 2012

Honorable CouncilmembersCity of Los AngelesC/O City ClerkRoom 395, City HallLos Angeles, CA 90012 .

Attention: Erika Pulst, Legislative Assistant

PROPOSAL TO SELL 12 SURPLUS CITY-OWNED PROPERTIESAT PUBLIC AUCTION 7' VARIOUS LOCATIONS (CD 1, S, a, 11 AND is)

SUMMARY

The Department of General Services (G80), Asset Management Division (AMD) proposesto sell at public auction 12 surplus City-owned properties located throughout the City. Theproperties are situated in Council Districts 1, 5, 8, 11 and 15. These properties are morefully described in the attached Ordinance and Notice of Sale.

A Class "C" estimate for each of the property was provided by staff appraisers to determineeach property's estimated fair market value. Based on this estimate of value, a minimumopening bid for each parcel was established as set forth on the attached Ordinance andNotice of Sale in order-to encourage competitive bidding.

PROPERTY DESCRIPTION

Parcels 1 through 4 are vacant lots. Parcel 1 is located at 1704 W. Jefferson Blvd. level lotwith an approximate lot size of 4,760 square feel. Parcel 2 is located at 11514Willowbrook Ave., level lot with an approximate lot size of 4,930 square feet. Parcel 3 islocated at 1309 Isabel Street, hillside with an approximate lot size of 5,600 square feet.Parcel 4 is located at 164th and Bonsallo Streets, level lot with an approximate lot size of5,930 square feet.

AN EQUAL. EMPL.OYMENT OPPORTUNITY -- AFFmM.A"~vE ACTION EMPLOYER

Parcels 5 through 11 are in Pacific Palisades. Parcels 8 and 11 are residential singlefamily homes, now vacant were previously rented on a month-to-month basis. Parcel 8,located at 15273 De Pauw Street is a three bedroom, 1.75 baths, 1,208 square foot homebuilt in 1947 with an approximate lot size of 7,500 square feet. Parcel 11, located at 15285De Pauw Street is a 3 bedroom, 2 baths, 2052 square feet home built in 1947 with anapproximate lot size of 7,500 square feet. Parcel 7, a single family home located at15229/15233 De Pauw, has three bedrooms, 1.75 baths, 2,172 square feet built in 1927,with an approximate lot size of 16,920 square feet. The property was included in the April25, 2011 public auction, was withdrawn due to a lawsuit, and has been settled and nowvacant. Parcels 5, 6, 9 and 10 are all vacant lots with approximate lot size that range from7,500 to 9,154 square feet.

Parcel 11 is old Fire Station 43 located at 10234 National Blvd. Palms. Lot size isapproximately 11,064 square feet, improved with 4,885 square foot building built in 1942,zoned R3-1. The property was sold in a previous public auction but failed to close escrow.

BACKGROUNDThe established City procedures for selling surplus property require that the property beoffered to.the appropriate governmental agencies for park and recreation purposes, openspace, or for low-income housing purposes. No objections were received from the notifiedagencies during the specified 60-day waiting period.

The Bureau of Engineering (BOE), Survey Section, provided the legal descriptions of theproperties and any reservation or exception of portions of the real property for easementsor rights required by the City were retained. The City Planning Department was alsonotified of the sale and concurred with the proposal to sell the property or waived itsresponse rights to comment on the sale.

The Council members in whose districts the properties are located have been notified ofthe proposed sale and concur in the sale of the properties.

The sale is an all cash sale with the City requiring, prior to the commencement of thebidding, a 10% deposit or $10,000.00, whichever is less, on each property based on theestablished minimum opening bid. The successful bidder (buyer) must deposit within 10working days from the date of the auction an additional deposit to make the total depositheld by the City equal to 10% of the purchase price. Any property that fails to close escrowwill be offered to the second, then third, and finally to the fourth highest bidder upon thesame terms and conditions specified in the Ordinance and Notice of Sale.

The properties are sold AS IS. The City will pay for a home warranty protection forParcels 7, and 11 (single-family residence) for a period of one yearfrom close of escrow,

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with the buyer paying any service calls. Parcel 8 is being sold for land value only,

Prospective buyers will be advised that some of the properties are subject to certaingovernmental and/or regulatory requirements including the Hillside Ordinance in the ZoningCode of the Department of Building and Safety, the City's Coastal policies andrequirements of the State Coastal Commission. They will also be provided with additionalreal estate disclosures as required by law. The sale will also be subject to covenants,conditions, restrictions, reservations, encroachments, easements, rights, and rights of wayof record or which are apparent from a visual inspection of the properties,

The prospective buyer shall pay all recording fees, documentary transfer taxes, one-half ofescrow fees, policy of title insurance, messenger service fees, broker's commission, if any,other real estate transaction taxes, fees, or application, and personal property taxes whereapplicable. The successful bidder will also be responsible for a survey of the property athis/her expense. The buyer has three months to close the sale after the date of notificationconfirming the sale. However, if payment is deferred for more than two months after thenotice confirming the sale, interest at one percent (1%) per month or fraction thereof shallbe charged for each month or fraction thereof in excess of two months.

NET PROCEEDS OF SALE

The proceeds of the sale after deducting the cost of escrow and other associated salecosts will be deposited in various accounts including the Potrero Canyon Trust Fund andthe General Fund, The net proceeds of the sale of the old Fire Station and the othervacant lots will be deposited to the General Fund. The net proceeds from the sale of theparcels in Pacific Palisades will go back to the Potrero Canyon Trust Fund,

FISCAL IMPACT STATEMENT

The sale of the properties will generate one-time gross revenue to the City ofapproximately $9A08,OOO.OO based on the minimum bid set for each parcel, prior to thepayment of the costs of sale. The net proceeds will be deposited in the appropriateaccounts as provided by law. The sale will eliminate the need for continued maintenanceof the properties. In addition, it will return the properties to the County tax rolls and willgenerate annual revenues from the payment of property taxes.

RECOMMENDATION

That the City Council:

1. Determine that the real properties, as described on the enclosed draft Ordinanceand Notice of Sale, are no longer required for the use of the City and that the publicinterest or necessity require their sale;

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2. Adopt the proposed Ordinance and Notice of Sale establishing the proposedminimum bids as set forth in said Ordinance and Notice of Sale;

3. Instruct the Department of General Services, Asset Management Division tocomplete the transaction as outlined in the Ordinance and Notice of Sale anddeposit the net proceeds of the sale into the appropriate account(s) as provided bylaw.

Should you need additional information, please contact Gemma Lopez at (213) 922-8542.

Tony M, oysterGeneral Manager

Enclosures

4

ORDINANCE NO.

An Ordinance determining that certain City-owned real properties are no longer required for the use ofthe City, and that the public interest or necessity requires the sale thereof, and ordering the sale thereofby oral bids at public auction, pursuant to Division 7, Chapter 1, Article 4, Section 7.24 of the LosAngeles Administrative Code.

THE PEOPLE OF THE CITY OF LOS ANGELES DO ORDAIN AS FOLLOWS:

Section 1. The City Council of the City of Los Angeles hereby finds and determines that certainreal properties owned by the City of Los Angeles and located at the addresses and/or locations set forthhereinafter and more particularly described in the Notice of Sale approved by the Council and affixedto Council File No. , which descriptions are incorporated herein by reference; are nolonger required for the use of the City and the public interest and necessity requires, and it is herebyordered, that the parcels of real property be sold pursuant to the provisions of Section 385 of the CityCharter, and Division 7, Chapter 1, Article 4 of the Los Angeles Administrative Code, for cash, to thehighest responsible bidder at an oral bid auction to be conducted in accordance with the provisions ofSection 7.24 of said Code on or after at a.m.zp.m., inRoom , Los Angeles, California 90012.The minimum prices, which will be accepted for said properties are as follows:

PLEASE REFER TO ORDINANCE EXIDBIT A ~ REAL PROPERTY AUCTION PARCELS

Section 2. The sale of said parcel(s) shall except and reserve to the City of Los Angeles all oil, gas,water, and mineral rights now vested in the City of Los Angeles without, however, the right to use thesurface of said land or any portion thereof to a depth of 500 feet below the surface, for the extraction ofsuch oil, gas, water and minerals. The sale(s) will further except and reserve to the City of LosAngeles any interest in the fee of any adjacent street(s) which would otherwise pass with theconveyance and shall be subject to covenants, conditions, restrictions, reservations, easements,encroachments, rights, and rights of way of record or which are apparent from a visual inspection ofthe real property(ies), and subject to such other covenants, conditions, restrictions, easements,reservations, encroachments, rights, and rights-of-way which are more particularly set forth in theNotice of Sale. The property(ies) offered for sale in this Ordinance is/are offered in an "AS IS"condition, and all bidders, by bidding on the propertyiies), are, by such act, expressly agreeing topurchase the each of the property(ies) in an "AS IS" condition and without any warranty as to fitnessfor use, fitness for a particular use, or condition of the property(ies), and that the seller has noobligation to correct any condition of the property(ies), whether known before Or after the date of theauction.

Section 3. The City Clerk is directed to publish the Notice of Sale for three days in a newspaper ofgeneral circulation printed and published in the City of Los Angeles and also to post the Notice of Saleon said real property in a prominent and visible location, said notice to be posted not less than thirty(30) days prior to the date set for said sale,

Section 4. The General Manager of the Department of General Services of the City of Los Angelesis hereby authorized to confirm the sale(s) in an amount not less than the minimum bids hereinspecified, !,ubject to the right of the Ci!y Council to reject any and aU bids and to withdraw the:Qro:Qcrty(ies) from sale at any time up to, and including, the time the sale iffilre so confi~qt!f!.

Section 5. Following confirmation of the sale(s), the Mayor of the City of Los Angeles isauthorized to execute a deed or deeds conveying said parcels to the respective successful bidders orassignees thereof. The City Clerk is authorized to attest thereto and to affix the City Seal.

Section 6. The Department of General Services, Asset Management Division, is authorized toopen title and escrow, issue title transfer instructions/escrow, and/or deliver the grant deed, andotherwise complete the transactions, and the Chief Accounting Employee of the Department ofGeneral Services is authorized to deposit the proceeds, over and above the expenses of sale, into theproper accounts as provided by law. Expenses associated with the sale include, but are not limited to,appraisal fees, environmental reports, legal description preparation, escrow fees, preliminary titlereport, recording fees, documentary transfer taxes, policy of title insurance, home warranty protectioncoverage, if applicable, and any associated site remediation costs.

The successful bidder shall pay for all recording fees, documentary transfer taxes, one-half escrowfees, policy of title insurance, messenger service fees, broker's commission, if any, other real estatetransaction taxes, fees or application, and personal property taxes where applicable. Should thesuccessful bidder desire a survey of the property, termite inspection and any other types of inspections,this may be accomplished by an independent surveyor and inspectors at the bidder's expense. The titlecompany and escrow company selected for the sale of all these properties shall be a sole discretion ofthe City of Los Angeles. ' Parcels improved with a single-family home will be covered with a homewarranty protection plan for one year at the City's expense from the date escrow closes with anyservice calls paid by the prospective buyer. Home warranty protection coverage information will bemade available to the successful bidder, upon request, on or before close of escrow.

Section 7. Should no acceptable bids be received or should the sale not be completed for theproperty described in this Ordinance, the General Manager of the Department of General Services ofthe City of Los Angeles or his designee is hereby authorized to

(a) re-offer said properties for sale pursuant to this Ordinance to the second highest bidder, andif second highest bidder fails to complete the sale and/or comply with the conditions of thesale, to the third then fourth highest bidders, upon the same terms and conditions specifiedin the Notice of Sale without further order or permission of the Council, or

(b) declare the present Notice of Sale immediately invalid and, pursuant to Division 7, Chapter1, Article 4, Section 7.32 of the Los Angeles Administrative Code, cause one or more otherNotice of Sale to be published and to conduct one or more other sale auction under thetenus and conditions of the new Notice of Sale until property(ies) authorized for sale underthis Ordinance is/are sold or otherwise disposed.

The provisions of this section shall be effective until the expiration of this Ordinance authorization onthe date that is five (5) years from the effective date of this Ordinance.

Section 8 The City Clerk shall certify to the passage of this Ordinance and have it published inaccordance with Council policy, either in a daily newspaper circulated in the City of Los Angeles or byposting for ten days in three public places in the City of Los Angeles; one copy on the bulletin boardlocated at the Main Street entrance to the Los Angeles City Hall; one copy on the bulletin boardlocated at the Main Street entrance to Los Angeles City Hall East; and one copy on the bulletin boardlocated at the Temple Street entrance to the Los Angeles County Hall of Records.

Ihereby certify that the foregoing Ordinance was introduced at the meeting of the Council of the Cityof Los Angeles , and passed at its meeting of --~-------------

Approved as to Form and Legality:Carmen A Trutanich, City Attorney June Lagmay, City Clerk

By ./3~JC l-)j---J

Name ibneHt:J< ~L2~JDate 1-d- :; ~ I k

Name ------------------~

Council File No, --------Antonio R. Villaraigosa, Mayor

NOTE:

ParcelNumber

1

2

3

4

5

6

7

8

9

10

11

12

ORO\~JANCE EXHIBIT A

REAL PROPERTY AUCTION PARCELS2012

The City of Los Angeles reserves the right to adjust the minimum bid of any propertylisted below at any time up to the date of the auction.

Property AddressAssessor Parcel No.! Caullcil District .M1nl!J1umBid

1704 W. Jefferson Boulevard (Lot) CD8 $ 60,000.00Los Angeles, CA 90007APN 5041-003-900

11514 Willowbrook Avenue (Lot) CD15 $ 60,000.00Los Angeles, CA 90059APN 6067-001-900

1309 Isabel Street (Lot) CD 1 $ 40,000.00Los Angeles, CA 90065APN 5454-009-900

164th and Bonsallo Streets (Lot) CD15 $ 98,000.00Los Angeles, CA 90247APN 6120-021-900

15221 De Pauw Street (Lot) CD 11 $ 990,000.00Pacific Palisades, CA 90272APN: 4412-028-903

15225 De Pauw Street (Lot) CD 11 $ 990,000.00Pacific Palisades, CA 90272AP N: 4412-028-904

15233 De Pauw Street (SFR) CD 11 $2,040,000.00Pacific Palisades, CA 90272APN: 4412-028-905

15273 De Pauw Street (SFR) CD 11 $ 990,000.00Pacific Palisades, CA 90272APN: 4412-028-909

15275 De Pauw Street (Lot) CD 11 $ 990,000.00Pacific Palisades, CA 90272APN: 4412-028·911

15281 De Pauw Street (Lot) CD 11 $ 990,000.00Pacific Palisades, CA 90272APN: 4412~028-912

15285 De Pauw Street (SFR) CD 11 $1,200,000.00Pacific Palisades, CA 90272APN: 4412-028-913

10234 National Blvd. (Fire Station) CD 5 $ 960,000.00Palms, CA 90034APN: 4314-023-900

TOTAL $9,408,000.00

NOTICE OF SALEOF REAL PROPERTYAT PUBLIC AUCTION

IN ACCORDANCE WITH THE PROVISIONS OFSECTION 385 OF THE CITY CHARTER, AND DIVISION 7,

CHAPTER 1, ARTICLE 4, OF THE LOS ANGELESADMINISTRATIVE CODE

NOTICE IS HEREBY GIVEN that the real property(ies) hereinafter described will beoffered for sale by the City of Los Angeles to the highest responsible bidder at a publicauction to be conducted by the Asset Management Division, Department of GeneralServices of the City of Los Angeles at a.m.lp.m. on at________________ , Los Angeles, CA 90012.

The auction will be held pursuant to Ordinance No. , ordering the same,adopted by the City Council of said City on , and upon theterms and conditions therein and hereinafter specified and in conformity with Section 385of the City Charter and Division 7, Chapter 1, Article 4, of the Los AngelesAdministrative Code.

The minimum price that will be accepted for the propertyties) shall be in the amount ofthe minimum bid for each said parcel indicated thereof in this Notice. The City of LosAngeles reserves the right to adjust the amount of the minimum bid at any time up to thedate of the auction.

Said real property(ies) is/are located within the City of Los Angeles, County of LosAngeles, State of California, and described as follows:

SEE ATTACHED EXHIBIT I "NOTICE OF SALE PROPERTY DESCRIPTION-2012 AUCTION"

',

THE PARCEL(S) MAY BE. SUBJECT TO ONE OR MORE OF THEFOLLOWWG ITEMS WITH REGARD TO THE DEVELOPMENT OF TlIESITEt INCLUDING BUT NOT Ji~TED TO: COAST~ COl\1J\PSSIDN2

HILLSIDE ORDINANCE (168,159), SLOPE! DENSITY ORDINANCE.l AND!ORANY PENDING ORDINANCES AFFECTING THE DEVELOPMENT OF THESITE. POTENTIAL BIDDERS ARE URGED W TO INVESTIGATE BUILDINGRESTRICTIONS AND GUIDELINES WITH THE APPROPRIATE AGENCIESPRIOR TO THE AUCTION,

BUYERS ARE FURTHER URGED TO INVESTIGATE DEVELOPMENT ISSUESASSOCIATED WITH THE PROPERTY(IES), INCLUDING BUT NO'L~IMITEDTO. CONDITIONS & RESTRICTIONS, GEOLOGY, SITE GRADING, STREETACCESS2 DRAINAGE;! AVA!LABILITY OF SEWER AND OTHER PUBLICFACILITIES.

All persons interested are invited to attend said auction and bid for the property(ies)intended to be sold. Each parcel will be called by the parcel number, and bids Will becalled for said parcel. All persons present who have been designated as qualified biddersmay orally bid thereon.

Any person wishing to be designated as a qualified bidder must place a deposit with theGeneral Manager of the General Services Department of the City of Los Angeles orhis/her representative prior to the commencement of the bidding. Said deposit must be atleast ten percent (10%) of the amount specified as the minimum price for each parcel or$10,000.00 for each parcel, whichever is less, in CASIDER'S CHECK ORCERTIFIED CHECK made payable to the City of Los Angeles.

In addition to the deposit noted, an additional deposit is required from the winningbidder ("Buyer") within 10 working days of the date of the auction to make the totaldeposit held by the City equal to ten percent (lQ.~o) of the purchase price for eacttparcel. Said depositts) shall constitute a guarantee that in the event the offer of purchaseis accepted by the City of Los Angeles, the Buyer making said offer should complete thepurchase according to the terms and conditions herein specified. Said deposit shall beaccepted, credited, and applied to the account of the purchase price of the subject parcel.In the event said offer to purchase the subject parcel is rejected, the deposit(s) shall bereturned to the Buyer.

In the event said offer to purchase is accepted but not completed and failure in that regardis not caused by any act of or omission of the City or any of its representatives, saiddeposius) shan be retained by the City as liquidated damages for the failure tocomplete said purchase and for all costs and expenses incurred for the necessaryproceedings incidental to acceptance of the offer. Buyer(s) who do not complete saidpurchase will be prohibited from bidding in future auctions for a period of one year.

A supervised open house will be conducted for each of those parcels that have aresidential home. The time(s) and date(s) of the open house are to be announced at a laterdate.

Said property(ies) is/are available for inspection by bidders prior to the auction. The Cityurges all bidders to inspect the property(ies) before bidding. By bidding on the parcel, thebidder represents to the City that bidder has in fact inspected the property/ies) to bidder'ssatisfaction, knows the condition thereof, and based on that knowledge and inspection, isnevertheless ready, willing, and able to purchase the propertyties).

No warranty or representation is made by the City of Los Angeles with respect to location,size, description of improvements, or zone set out ill the notice of said property(ies)hereinbefore described; such data being set forth for information only and is not; and shallnot be deemed to be a part of the description by, or conditions of, which such property(ies)will be offered for sale or sold. The City makes no representation or warranty whatsoeveras to the condition or usability of the property(ies); the presence of any defects, whetherapparent or hidden, or the fitness of the property/ies) for use, or its/their fitness for aparticular use.

Said property(ies) offered for sale is/are offered in an "AS IS" condition, and all bidders,by bidding on the property(ies), are, by such act, expressly agreeing to purchase theproperty(ies) in an "AS IS" condition and without any warranty as to fitness for use,fitness for a particular use, or condition of the propertyues), and that the seller has noobligation to correct any condition of the property(ies), whether known before or after thedate of the aucti on.

RELEASE: Effective from and after the Closing, Buyer hereby waives, releases,acquits, and forever discharges Seller, and Seller's agents, officials, officers, boards,employees, contractors, and agents to the maximum extent permitted by law, of and fromany and all claims, actions, causes of action, demands, rights, liabilities, damages, losses,costs, expenses" or compensation whatsoever, direct or indirect, known or unknown,foreseen or unforeseen, that it now has or that may arise in the future because of or in anyway growing out of or connected with this Agreement and the Property (including)without limitation the Condition of the Property). This release includes all liability underany federal, state, or local statute, ordinance, rule, or regulation applicable to the property,including without limitation, the Comprehensive Environmental Response, Compensationand Liability Act of 1980, as amended (Title 42 United States Code §§9601-9675), theResource Conservation and Recovery Act of 1976 (title 42 United States Code §§6901-6992k), the Carpenter-Presley-Tanner Hazardous Substance Account Act (Health andSafety Code §§25300-25395.45), and the Hazardous Waste Control Law ( Health andSafety Code §§25100-25250.28), BUYER EXPRESSLY WAIVES ITS RIGHTSGRANTED UNDER CALIFORNIA CIVIL CODE §1542 AND ANY OTHERPROVISION OF LAW THAT PROVIDES A GENERAL RELEASE DOES NOTEXTEND TO CLAIMS THAT BUYER DOES NOT KNOW OR SUSPECT TO EXISTIN ITS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWNBY IT lvf()ST HAVE MATERIALLY AFFECTED ITS AGREEMENT YO RELEASESELLER.

Should no acceptable bid be received, or should the sale not be completed for any of thepropertyiies) described in the Ordinance, the General Manager of the Department ofGeneral Services of the City of Los Angeles or his designee, without further order orpermission of the Los Angeles City Council, is hereby authorized to

a) re-offer said property/ies) for sale pursuant to the Ordinance to the second highestbidder, and if second highest bidder fails to complete the sale and/or comply withthe conditions of the sale, to the third then fourth highest bidders, upon the sameterms and conditions specified in the Notice of Sale, or

b) declare this Notice of Sale immediately invalid for said property(ies) and, pursuantto Division 7, Chapter 1, Article 4, Section 7.32 of the Los Angeles AdministrativeCode, cause one or more other Notice of Sale to be published and to conduct oneor more other sale auction under the terms and conditions of the new Notice ofSale until property(ies) authorized for sale under the Ordinance is/are sold orotherwise disposed. The provisions of this section shall be effective until theexpiration of the Ordinance authorization, if specified in the Ordinance, on theOrdinance expiration date.

Any and all bids may be rejected or the propertyries) withdrawn from sale by the GeneralManager of Department of General Services or the City Council of the City of LosAngeles, or said sale(s) may be postponed or continued until such time as the sale(s) is/areconfirmed by the General Manager of the Department of General Services of the City ofLos Angeles.

No sale shall be made or become final unless and until confirmed by the General Managerof the Department of General Services of the City of Los Angeles.

The successful bidder' shall pay all escrow and incidental costs associated with theproperty(ies) purchase transaction(s) including, but not limited to, administration fees,auction fees, survey/environmental disclosure fees, recording fees, documentary transfertaxes, one-half of City of Los Angeles' escrow fees, policy of title insmance, messengerservice fees, broker's commission, if any, other real estate transaction taxes, fees, orapplication, and personal property taxes where applicable. Should a successful bidder~esire an independent survey of the property(ies), tennite inspection, and any other typesof inspections, the bidder may accomplish this by an independent surveyor andlorinspectors at the bidd~r's expense. The title company and escrow company used for thesale of all these properties shall be at the sale discretion of the City of Los Angeles.Parcel(s) improved with a single-family home will be covered with a home warrantyprotection plan for one year at the City's expense from the date escrow closes with anyservice calls paid by the prospective buyer. Home warranty protection coverageinformation will be made available to the successful bidder, upon request, on or beforeclose of escrow.

The full balance of the parcel(s) purchase price and associated purchase costs shall be paidto the City by the successful bidder on or before a date that is three months after thatsuccessful bidder has been notified by the Asset Management Division of the Departmentof General Services that the sale has been confirmed. Provided that if payment is deferredfor more than two months after the notice confirming the sale, interest at one percent (1%)per month or fraction thereof shall be charged for each month or fraction thereof in excessof two months. Upon said payment, the City agrees to deliver said purchaser, his/hernominee or assignee(s), the grant deed(s) to the real propertyties) so purchased, togetherwith a standard policy of title insurance issued by a reputable and incorporated titlecompany, showing title to be vested in the purchaser subject to the terms, conditions, andreservations set forth above.

APPROVED AS TO FORM AND LEGALITY:

CARMEN A. TRUT ANICH, City Attorney

By ~i2.£r[/

.4redc /?, .i?~Deputy City Attorney

Name:

Dated 1-:13--/2-File No. ---------------------

JUNE LAGMA Y, City Clerk

By _

Name:

Deputy

ANTONIO VILLARAIGOSA, Mayor

EXHIBIT I

NOTICE OF SALE - PROPERTY DESCRIPTION

2012 AUCTION

Property(ies) sold in this auction is subject to any exceptiones) as disclosed herein for eachproperty. In addition, all properties offered for sale in this auction are subject to thefollowing, including but not limited to.

EXCEPTING AND RESERVING unto the City of Los Angeles all oil, gas, water, andmineral rights now vested in the City of Los Angeles without, however, the right to use thesurface of said land or any portion thereof to a depth of 500 feet below the surface, for theextraction of such oil, gas, water and minerals.

SUBJECT TO covenants, conditions, restrictions, reservations, easements, encroachments,rights, and rights-of-way of record or which are apparent from a visual inspection of thereal property(ies) and excepting and reserving to the City of Los Angeles any interest in thefee to the adjacent street(s) which would otherwise pass with the conveyance of the abovedescribed parcel(s) of land.

ALSO SUBJECT TO sale "As Is" condition, and purchaser purchasing the City ownedproperty(ies), by such act, expressly agreeing to purchase the propertyries) in an "As Is"condition and without any warranty as to fitness for use, fitness for a particular use, orcondition of the property(ies), and that the City has no obligation to correct any conditionof the property/ies), whether known before or after the date of the sale.

RELEASE. Effective from and after the Closing, Buyer hereby waives, releases, acquits,and forever discharges Seller, and Seller's agents, officials, officers, boards, employees,contractors, and agents to the maximum extent permitted by law, of and from any and allclaims, actions, causes of action, demands, rights, liabilities, damages, losses, costs,expenses, or compensation whatsoever, direct or indirect, known or unknown, foreseen orunforeseen, that it now has or that may arise in the future because of or in any way growingout of or connected with this Agreement and the Property (including without limitation theCondition of the Property). This release includes all liability under any federal, state, orlocal statute, ordinance, rule, or regulation applicable to the property, including, withoutlimitation, the Comprehensive Environmental Response, Compensation, and Liability Actof 1980, as amended (Title 42 United States Code §§9601-9675), the ResourceConservation and Recovery Act of 1976 (Title 42 United States Code §§690 1-6992k), theCarpenter-Presley- Tanner Hazardous Substance Account Act (Health and Safety Code§§25300-25395.45), and the Hazardous Waste Control Law (Health and Safety Code§§25100-25250.28). BUYER EXPRESSLY WAIVES ITS RIGHTS GRANTED UNDERCALIFORNIA CIVIL CODE §1542 AND ANY OTI-IER PROVISION OF LAW THATPROVIDES A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THATBUYER DOES NOT ](}.JOW OR SUSPECT TO EXIST IN ITS FAVOR AT THE TIMEOF EXECUTING THE RELEASE, WHICH IF KNO\VN BY IT MUST HAVEMATERIALL Y AFFECTED ITS AGREEMENT TO RELEASE SELLER.

The City of Los Angeles makes no warranty with respect to location, size, description ofimprovements or zone set out in the Notice of Sale of the property(ies) herein described;such data being set forth for information only and is not, and shall not be deemed to be partof the descriptionis) by, or conditions of, which such property(ies) will be offered for saleor sold. The City makes no representation or warranty whatsoever as to the condition orusability of the property(ies), the presence of any defects, whether apparent or hidden, orthe fitness of the propertyries) for use, or its/their fitness for a particular use.

Prospective bidders/buyers are further urged to investigate any development problemsissues associated with the property/ies), including but not limited to, Building and Safetyrecords, geology, site grading, street access, drainage, availability of sewer and other publicutilities.

The sale of these properties may be subject to the following statutory disclosures, whichinclude the following:

1. Airport Influence Area Disclosure (Civil Code Section 1102.6a)Certain parcels may be within two statutes miles of an airport, including the Los AngelesInternational Airport, Santa Monica Airport, or Burbank-Glendale-Pasadena Airport.

2. Notice of Your Supplemental Propeliy Tax Bill (Civil Code Section] l02.6c)Califomia property tax law requires the Assessor to revalue real property at the time theownership of the property changes. Because of this law, you may receive one or twosupplemental tax bills, depending on when your loan closes.

The supplemental tax bills are not mailed to your lender. If you have arranged for yourproperty tax payments to be paid through an impound account, the supplemental tax billswill not be paid by your lender. It is your responsibility to pay these supplemental billsdirectly to the Tax Collector.

If you have any question concerning this matter, please call your local Tax Collector'sOffice.

3. Transfer Fee Disclosure (Civil Code Section 1102.6e)The sale and transfer of the properties is subject to a transfer fee, as defined in Section1098. The payment of a transfer fee is required upon transfer of the property. Upon openof escrow, notice will be given to the buyer of the amount of the fee required for the askingprice of the real property, the entity to which funds from the fee will be paid, if available,the purposes for which funds from the fee will be used and the date or circumstances underwhich the obligation to pay the transfer fee expires, if any.

4. Real Estate Transfer Disclosure Statement: Disclosures Upon Transfer ofResidential Propeliy

A Real Estate Transfer Disclosure Statement (TDS) describing the condition of a propertywill be provided to the buyer as soon as practicable and before transfer of title and/or closeof escrow.

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Buyer will be provided, where applicable, a copy of the following documents and/orbrochures for information and/or signature: (1) Buyer's Inspection Advisory, (2) protectYour Family FromLead in Your Home, (3) A Brief Guide to Mold, Moisture, and YourHome, (4) Environmental Hazards: A Guide for Homeowners, Buyers, Landlords andTenants (The Homeowners Guide to Earthquake Safety), (5) Commercial PropertyOwner's Guide to Earthquake Safety, (6) Smoke Detector Statement of Compliance, (7)Water Heater Statement a/Compliance, (8) Seller's Affidavit of Non-Foreign Status and/orCalifornia Withholding Exemption, (9) Lead-Based Paint Hazard Disclosure, and (l0)Supplemental Statutory and Contractual Disclosures.

PARCEL NO. 1Location:1704 W. Jefferson Blvd.Los Angeles, CA 90007APN 5041-003-900LEGAL DESCRIPTION:THE WESTERLY 25.00 FEET OF LOT 8 AND THE EASTERLY 15.00 FEET OF LOT9, BLOCK A OF THE ALDERSON AND SON'S WEST JEFFERSON STREET TRACT,IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OFCALIFORNIA, AS PER MAP RECORDED IN BOOK 4, PAGE 35, OF MAPS, IN THEOFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

Location:11514 Willowbrook Ave.Los Angeles, CA 90059APN 6067-001-900LEGAL DESCRIPTION:THAT PORTION OF LOT 11 OF TRACT NO. 3053, IN THE CITY OF LOS ANGELES,IN THE COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, RECORDED INBOOK 35, PAGE 95 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OFSAID COUNTY.

PARCEL NO.3Location:1309 Isabel StreetLos Angeles, CA 90065APN 5454~009-900LEGAL DESCRIPTION:LOT 34, IN TRACT 4085, IN THE CITY OF LOS ANGELES, COlfl\fTY OF LOSANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 46,PAGES 9 TO 11 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAIDCOUNTY.

PARCELNO.2

Approximate Size4,760+(- sq. ft.

Vacant Lot

Minimum Bids 60,000.00

ZoneRD 1.5-1

CD 8

fWproximate Size4,930+/- sq. ft.

Vacant Lot

Minimum BidRDl-l s 60,000.00

CD 15

Approximate Size5,600+/- sq. ft.

Vacant Lot

Minimum Bids 40,000.00

ZoneRl-l

CD 1

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PARCEL NO. 4Location:164th & Bonsallo StreetsLos Angeles, CA 90247APN 6120-021-900LEGAL DESCRIPTION:THAT PORTION OF LOT 1 OF TRACT NO. 18525, IN THE CITY OF LOS ANGELES,COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDEDIN BOOK 626, PAGES 38 AND 39 OF MAPS, ThTTHE OFFICE OF THE COUNTYRECORDER OF SAID COUNTY.

15221 De Pauw StreetPacific Palisades, CA 90272APN: 4412-028-903LEGAL DESCRIPTION:LOT 9, IN BLOCK 19, TRACT NO. 9300 IN THE CITY OF LOS ANGELES, COUNTYOF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK125, PAGES 55 TO 78 INCLUSIVE, OF MAPS, IN THE OFFICE OF THE COUNTYRECORDER OF SAID COUNTY.

PARCEL NO, 6Location:15225 De Pauw StreetPacific Palisades, CA 90272APN 4412-028-904LEGAL DESCRIPTION:LOT 10, IN BLOCK 19, TRACT NO. 9300 IN THE CITY OF LOS ANGELES,COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDEDIN BOOK 125, PAGES 55 TO 78 INCLUSIVE, OF MAPS, IN THE OFFICE OF THECOUNTY RECORDER OF SAID COUNTY.

PARCEL NO. 5Location:

PARCEL NO. 7Location:15233 De Pauw Street,Pacific PalisadesCA 90272

Approximate Size Minimum Bid

5,930+/- sq. ft.Vacant Lot

CD 15

s

Approximate Size

9,154 +/- sq. ft.Vacant Lot

CD 11

Minimwn Bid

Rl-l s 990,000.00

Approximate Size9,121± sq. ft.Vacant Lot

CD 11

Minimum Bid$ 990,000.00

ZoneRI-I"

Approximate Size16,920+/- sq. ft. lot

with a two-story 2,172 sq. ft.single- family residence built in

1927,3 BRJ1.75BACD 11

Minimwn Bid$ 2,040,000,00

ZoneRl-1

APN 4412-028-905LEGAL DESCRIPTION:PARCEL A, IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATEOF CALIFORNIA, AS SHO\VN ON PARCEL MAP L.A. NO. 970, FILED IN BOOK 8PAGE 43 OF PARCEL MAPS, I1':r THE OFFICE OF THE COUNTY RECORDER OFSAID COUNTY.

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PARCEL NO. 8Location:15273 De Pauw Street,Pacific PalisadesCA,90272

Approximate Size7,500+/- sq. ft. lot

with a 1, 208 sq. ft. onestory single family

residence built in 19473 BDRMlI .75 BA.

CD 11

Minimum Bid$990,000.00

ZoneRI-J

APN 4412-028-909LEGAL DESCRIPTION:LOT 22 IN BLOCK 19, TRACT NO. 9300 IN THE CITY OF LOS ANGELES, COUNTYOF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK125, PAGES 55 TO 78 INCLUSIVE, OF MAPS, IN THE OFFICE OF THE COUNTYRECORDER OF SAID COUNTY.

PARCEL NO. 9Location:15275 De Pauw Street,Pacific PalisadesCA,90272APN 4412-028-911LEGAL DESCRIPTION:LOT 23, IN BLOCK 19, TRACT NO. 9300 IN THE CITY OF LOS ANGELES,COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDEDIN BOOK 125, PAGES 55 TO 78 INCLUSIVE, OF IVlA.-PS,IN THE OFFICE OF THECOUNTY RECORDER OF SAID COUNTY.

PARCEL NO.1 0Location:15281 W. De Pauw Street,Pacific PalisadesAPN 4412-028-912LEGAL DESCR1PTION~LOT 24, IN BLOCK 19, TRACT NO. 9300 IN THE CITY OF LOS ANGELES,COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDEDIN BOOK 125, PAGES 55 TO 78 INCLUSIVE OF MAPS, IN THE OFFICE OF THECOU.NTY RECORDER OF SAID MAP.

Approximate Size7,500+1- sq. ft. Lot

ZoneRl-l

Minimum Bids 990,000.00

CD 11

Approximate Size7,500+/- sq. ft. lot

Minimum Bid$990,000.00

CD 11

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PARCEL NO, 11Location:15285 W. De PauwStreet, Pacific PalisadesCA,90272

A12proximate Size7,500+1· sq. ft

Improved with 2,052 sq.ft. one-story single family

residence built in 19473 BRDM/2BA

CD 11

Minimum Bid$1,440,000,00

APN 4412-028-913LEGAL DESCRIPTIONLOT 22 IN BLOCK 19, TRACT 9300 IN THE CITY OF LOS ANGELES, COUNTY OFLOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 125,PAGES 55 TO 78 INCLUSIVE, OF MAPS, IN THE OFFICE OF THE COUNTYRECORDER OF SAID COUNTY.

PARCEL NO. 12Location:10234 National Blvd.,Palms, CA 90034

Approximate Size11,064 +I-sq. ft lot

Improved with 4,885 sq.ft. building built in 1942OLD FIRE STATION

Minimum Bid$960,000.00

ZoneRI-l

43APN 4314-023-900 CD 5LEGAL DESCRIPTIONLOT "0", IN BLOCK "Boo OF THE PALMS, IN THE CITY OF LOS ANGELES,COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDEDIN BOOK 21, PAGES 43 TO 45 INCLUSIVE OF MISCELLANEOUS RECORDS INTHE OFFICE OF SAID COUNTY.

GEOTECHNICAL REAL ESTATE DISCLOSU~ FQR P~CIFIC P_ALISADE§PROPERTIES: PARCELS 5,6,7,819,10 AND li

PLEASE REFER TO GEOTECHNICAL REAL ESTATE DISCLOSURE REPORT,W.O. EI70213F, CEO FILE #05-159, NOVEMBER 4, 2009, NOVEMBER 18, 2009AND JUNE 27, 2012.

COpy OF THE REPORTS ARE AVAILABLE FOR REVIEW ON OUR WEBPAGE AND IN THE OFFICES OF THE DEPARTMENT OF GENERALSERVICES, ASSET MANAGEMENT DIVISION, ROOM 201 CITY HALL SOUTH,111 E. FIRST STREET, LOS ANGELES, CA 90lH2

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